Central Bank Cuts Overseas Spending from $150,000 to $50,000

CBN has yesterday lowered the limit for usage of naira debit cards for transactions overseas to $50,000 from $150,000 per person, per annum.

The Director, Trade and Exchange Department, CBN, Mr. Olakanni Gbadamosi made this announcement known through a circular titled“Usage of Naira Denominated Cards Overseas.

The circular stated,“All authorised dealers and the general public are hereby informed that with effect from the date of this circular (13th April 2015) the existing limit on the usage of the naira denominated cards for transactions overseas has been reviewed downward.

“Accordingly, the limit has been reduced from $150,000 to $50,000 per person, per annum. In addition, authorised dealers are to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300. Authorised dealers are to ensure strict compliance with this new limit and render monthly returns of the transactions.”

The decision to reduce the limit was decided at a meeting of the Bankers Committee held last week, to curtail the arbitrage manner in which the cards were being used.

Managing Director/Chief Executive, Union Bank Mr. Emeka Emuwa, at the post Bankers Committee press briefing said,“We realise that people were using the cards in a manner they were not expected to use them. There were some arbitrage going on, and in order to continue to support the stability in the foreign exchange market.

”So it was agreed at the committee that the limit would be reduced for the use of the naira debit cards. You will still have, as a customer, unfettered access to your dollar account (cards) but the naira cards the limit will be reduced to a judicious level.”